When is shorting JGB's a good idea?

I never understood the JGB market, but I'm of the inclination that it's like bunds, never short them.

Odey shorted 10yr JGB's and got burned in April (down ~10%)

The only time I understand JGB shorting is if it's part of a barbell or some other global RV trade.

Any logic behind that?

5 Comments
 
 

How about when they buy enough of them to raise inflation expectations.

Shorting government bonds into central bank buying has often been highly profitable.

 

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